Just topped 1 million dollars for the first time!

[Bob Foster]

The informative years of Ron Werner

w]http://www.youtube.com/watch?v=SRdH7uQm70Yw]

w]http://www.youtube.com/watch?v=4PcvZ_WTL1Aw]

 

[Ron Werner]

Ok I've read all the threads and very interesting I might add. BigMike, I got a big ole question. You're running portables, how is the noise, hot exit vac tank smelling air viewed by the customers. I had a glitch in my TM three weeks ago had to finish the stairs with my Mytee; I felt I had to warn the living shit out of my customers the pending noise. And how do they view you stopping, filling up a bucket and pouring that into a toilet? And how do they view you turning on the bath tub hot water to fill that bucket, over and over and over.

This I gotta know.

I started with portables. This is a non-issue really. I just explained it ahead of time. Usually there isn't much of a smell since the recovery tank is flushed at the end of every job, and while cleaning, there's the smell of the prespray and rinse.

 

[LisaWagnerCRS]

Congrats to you Mike... always good to see people creating success despite the big bad economy boo-hoo's.



Lisa

P.S. I'm sure this goes without saying... but hitting a million isn't a big deal if you aren't keeping much of it. I know when Dave Keiter first started with us, he was at a million but had a net loss, then turned that into money in his pocket the next year when he won our "better your best" contest. So what's important is not that gross number, but what you end up with when it's all said and done. Whether you are a big operation by choice, or not, it's all about the lifestyle you want to have - and have your company fund that ideal lifestyle for you.

 

[Bob Foster]

Simple. Do the best job you can every time. That means the best for both the customer and you.

What I notice around here is that the ones that are the most successful in this business has no correlation to the price they charge for their work.

But it does have a lot to do with how they handle their money and their own time.

 

[Brian R]

You might be able to come to the % if you narrow the criteria
IE: Homewoner still living in same house etc

No move outs or rentals or just unhappy customers?

 

[BigMike]

In almost 10 yrs I think I can count on one hand the people who have even mentioned the fact that we use portables. Never once had a customer upset because I was dumping dirty water in their toilet. In fact.... I make SURE they see what is coming out of their carpet. I call it the WOW factor. And... I have had the occassional person tell me that the last cleaner had a truck mount and say they wouldn't clean with anything else... I always ask them "what if your condo was on the 57th floor? How could they possibly clean with a truck mount? If the portable is no good on the first 2 stories of your home why would it all of the sudden be good enough to use on the 57th floor? He probably wanted to charge you extra to get these spots out to didn't he? That makes them think and usually shuts them right up. I also take a small amount of Odor Eliminator and spray in the tank before we clean a home. Smells fresh and clean each and every time. I also make my guys wash out the inside of each machine at the end of the day so they stay clean. As far as the noise goes.... most people dont mind. It beats getting dirty looks from their neighbor because of a truck mount running outside at 8am on a Saturday. We may someday start making a switch but its unlikely. It cost pennies to run a portable and you dont even have to use your own pennies!

Ok I've read all the threads and very interesting I might add. BigMike, I got a big ole question. You're running portables, how is the noise, hot exit vac tank smelling air viewed by the customers. I had a glitch in my TM three weeks ago had to finish the stairs with my Mytee; I felt I had to warn the living shit out of my customers the pending noise. And how do they view you stopping, filling up a bucket and pouring that into a toilet? And how do they view you turning on the bath tub hot water to fill that bucket, over and over and over.

This I gotta know.

I started with portables. This is a non-issue really. I just explained it ahead of time. Usually there isn't much of a smell since the recovery tank is flushed at the end of every job, and while cleaning, there's the smell of the prespray and rinse.

 

[BigMike]

My business has been blessed for sure. We refused to take part in the recession. Our business quadrupled actually and continues to grow. It's our pricing structure. For so long carpet cleaners have been told to charge, charge, charge for anything they can.... and most have. Problem with that was that the customer usually felt ripped off and they dont forget that. Sure... the cleaner was able to up his bottom line but at what cost? In most cases we have seen it cost them the customer for life. We don't nickle and dime our customers at all. We have absolutely no hidden charges of any kind...ever! We have no fine print in our ads and no restrictions for them to worry about. No slick talking, pressure selling or dog and pony shows either. Our employees DO NOT upsell anything and spot/stain removal is always included with every cleaning. Even pet spots! Our customers don't pay extra for anything. When we leave they feel good about spending money with us and can immediately see the value they received as compaired to every other cleaner they have ever dealt with. We have a very high retention rate for customers and get an enourmous amount of referals from them. Im not saying that my way is the only way.... Im just saying that we know what the main stream customer wants and we deliver it at a price they can AFFORD. Even the wealthy look for bargins.... thats part of how they became wealthy! shiteatinggrin

I am able to keep a large percentage of what we gross as I keep overhead low, have a fraction of the maintenance to deal with, do not run credit lines and we pay for things at time of sale with only money we have to spend. My company operates completely debt free so that makes a very big difference. It's very hard to build a home with borrowed bricks as my grandfather use to say. Of course I have general operating expenses... and as with every legit company, labor is always my biggest expense.

Congrats to you Mike... always good to see people creating success despite the big bad economy boo-hoo's.



Lisa

P.S. I'm sure this goes without saying... but hitting a million isn't a big deal if you aren't keeping much of it. I know when Dave Keiter first started with us, he was at a million but had a net loss, then turned that into money in his pocket the next year when he won our "better your best" contest. So what's important is not that gross number, but what you end up with when it's all said and done. Whether you are a big operation by choice, or not, it's all about the lifestyle you want to have - and have your company fund that ideal lifestyle for you.

 

[Brian R]

Big Mike Wrote

If the portable is no good on the first 2 stories of your home why would it all of the sudden be good enough to use on the 57th floor? He probably wanted to charge you extra to get these spots out to didn't he?

That's brilliant!
Wish I would have thought of that one when I was running portables.

The other things you said were good as well.

 

[Padden McFadden]

Hey Big Mike,
I heard you on pro cleaners a long time ago, I thought "finally a guy who thinks like me" I run my company very similar to yours. I never could do it any other way. The biggest difference between us, your making money , and I'm always broke.

Maybe I should change my name to "Big Andy"

 

[Lee Stockwell]

Mike how is your competitive position with the Wm. F Bane Company in Indianapolis?

They've run a very clean multi-truck operation there for over 40 years. I know at one time they advertised that they cleaned more carpet than any cleaner in the state, and once ran over ten trucks.

 

[Ron Werner]

A portable is "adequate" on the 2nd and the 57th, it is the only option however on the 57th, other than the other methods.
I see a huge difference in performance between my TM and a portable

 

[B&BGaryC]

Sound like a fun guy to work for. Are you sure you shouldn't yell at your top guy all the time for either doing what you told him to do this time or doing what you told him to do last time? I think it's important to tell your people to do two things that are completely opposite each other that way you will always have a reason to yell at them for something no matter how well they listen. You should also turn down any sort of proven method for building the business and buy $20,000 in useless advertising and then yell at them about how much you paid for advertising and they still can't get any business, even if they have managed to build by 7 times what is was when they started.

Just a thought, there is more than 1 way to do things.

 

[tracywalker]

After this thread was started I called Big Mike and realized he is on to something. I started in April advertising whole house specials like he does, after 2 months I am starting to get where I can't keep up. Every time valpak hits the homes the phone rings off the hook. More importantly my job average has increased over $40 per job since making the switch. I may work a little more at each job, but once there I figure it is not much of a difference to do say 8 rooms verses 5. I do wonder how many jobs a day Big Mike's guys do per truck with portys, and if he runs 2 man crews on every truck? I keep thinking about sticking with a TM but dual wanding to pick up production while staying on the truck. Thanks Big Mike!

 

[-JB-]

Tracy,

That's great!

Now, are you doing this to get "off the truck" or just to "stay busy", just curios as to you intentions.

Thanks JB



...and Mike, how adversely do you think $249 over the $189 would affect the responses?

 

[BigMike]

Go to fixed pricing and follow the KISS method with customers. Stay away from any self proclaimed "guru" who wants to sell you their "secret" to making more money. No matter how slick talking they might be... they are usually the only ones making the money. Besides... a "secret' is just that... a SECRET! And virtually all that so called 'secret information" can be found for free at most any local library and that's NO SECRET! shiteatinggrin In today's economic crisis you have to make it simple for the customer to buy from you.

And I suppose it couldn't hurt to change your name to "Big Andy!"

Hey Big Mike,
I heard you on pro cleaners a long time ago, I thought "finally a guy who thinks like me" I run my company very similar to yours. I never could do it any other way. The biggest difference between us, your making money , and I'm always broke.

Maybe I should change my name to "Big Andy"

 

[BigMike]

I had a Bane system early on and to be quite honest I wasn't impressed all that much. As far as the company goes.... they are a good company as far as I know. They may have at one point many moons ago cleaned more carpet than any other cleaner in the state but I highly doubt they still hold that claim. I could be wrong but I think now they are more into equipment sales/service than actual carpet cleaning. I've met most of teh Bane people at one point or other an dhave found them to be great people.

Mike how is your competitive position with the Wm. F Bane Company in Indianapolis?

They've run a very clean multi-truck operation there for over 40 years. I know at one time they advertised that they cleaned more carpet than any cleaner in the state, and once ran over ten trucks.

 

[BigMike]

As I have mentioned in a lot of post.... the way I do things is not the only way.

Sound like a fun guy to work for. Are you sure you shouldn't yell at your top guy all the time for either doing what you told him to do this time or doing what you told him to do last time? I think it's important to tell your people to do two things that are completely opposite each other that way you will always have a reason to yell at them for something no matter how well they listen. You should also turn down any sort of proven method for building the business and buy $20,000 in useless advertising and then yell at them about how much you paid for advertising and they still can't get any business, even if they have managed to build by 7 times what is was when they started.

Just a thought, there is more than 1 way to do things.

 

[BigMike]

You are welcome! To answer you question.. we run 2 men per truck...usually 2 porty's per truck and each truck has an average of 4 jobs per day. There is nothing wrong with using a truck mount but the operating cost are a bit more. It also means that usually if that truck mount breaks down then that entire truck is out of service till it gets fixed no matter how long it may be. I'm glad to know that the fixed pricing is working well for you. There are a lot of nay-sayers out there... most of whom are looking for work! Feel free to contact me any time if I can ever be of any assistance.

After this thread was started I called Big Mike and realized he is on to something. I started in April advertising whole house specials like he does, after 2 months I am starting to get where I can't keep up. Every time valpak hits the homes the phone rings off the hook. More importantly my job average has increased over $40 per job since making the switch. I may work a little more at each job, but once there I figure it is not much of a difference to do say 8 rooms verses 5. I do wonder how many jobs a day Big Mike's guys do per truck with portys, and if he runs 2 man crews on every truck? I keep thinking about sticking with a TM but dual wanding to pick up production while staying on the truck. Thanks Big Mike!

 

[BigMike]

No... I'm not doing it to "get off the truck" although I do not spend nearly the time I use to on the truck. We all like to stay busy but I'm not doing it for that reason either. I'm doing it (and have been doing it for 10yrs) because that's what the consumer wants and deserves. There are a lot of people who completely disagree with how I do things and my ideas... and by NO MEANS is my way the only way to do things... it's just the way I do things. I have been blessed for sure no doubt but my "crazy..against the grain" way of silly fixed pricing has kept my company quite busy the last 8yrs or so and has grown tremendiously at a time when most carpet cleaning companies (or companies in general) are cutting way back or going out of business.

You have to find what price works in your area. Don't top it out from the start either. That leaves no room for an increase if needed later down the road. And that ground between your "working price" and what the top out price would be is crucial to making things keep working later down the road. I would think that in most major markets you could easily offer whole house cleaning (with EVERYTHING included) for $249.00 with a top out price around $279-$289. Of course this varies from city to city and town to town.

Tracy,

That's great!

Now, are you doing this to get "off the truck" or just to "stay busy", just curios as to you intentions.

Thanks JB



...and Mike, how adversely do you think $249 over the $189 would affect the responses?

 

[Ron Werner]

I can see that working if you can do mass work, but with just one person, and cleaning more thoroughly, I'd have a challenge getting through 3 houses let alone 4. I can get through 2 houses depending on the soiling and size. But I just booked a house that had been abused and it is just under $500, LR/DR/hall/3bdrms/stairs. I cleaned this same size house for $132 16 yrs ago. I know there are some that say I'm over charging but I'll be there for more than 2hrs. I all depends on what the customer can afford and what kind of cleaning they want. 18yrs ago we were busy when did the $100 house pkgs. Today I would be extremely busy if I offered $200 hse pkgs, but I couldn't clean the way I know I should.

 

[rick imby]

Ron, don't change your ways, it appears to me you are a well paid expert in your field. You have great equipment, and a great work ethic. You bond with your customers and your vacuum cleaner and I believe you make a great living.

You are providing a safer, more comfortable place for people to live. You are admired for your attention to dirt.

Your business model does not easily morph into a mass business model like Big Mikes. Does that matter? If you want to build a large company you will have to move out of the wilderness---I believe you would be a real fool to do that.

I like milkshakes, $1.29 at Wendys for a chocolate frosty and $3.99 at Dairy Queen for a Cherry shake that I have to eat with a spoon because the chunks of cherry plug my straw. They are both great just like your model and Big Mikes.

Big Mike and Ken (the Hag) Snow have developed companies whereas most carpet cleaners have developed a way to make a living. Many make a very good living.

************It is difficult to make our material condition better by the best law, but it is easy enough to ruin it by bad laws.
Theodore Roosevelt


Montana Courtroom Technology

Spokane Modular Homes

Unlimited Cell Phones

 

[dday]

Good thread. I usually do a $99 Special in the winter (whole house up to 5 areas), and I have often thought of doing something along the lines of what the OP has done - one price for one story house, another price for two story.

Thanks for sharing, Big Mike.

David

 

[Guest]

Any particular brand portable loyalty you have? It would be a great testimonial, to know what you have been using and abusing, and still buying more.

 

[dday]

Any particular brand portable loyalty you have? It would be a great testimonial, to know what you have been using and abusing, and still buying more.

I'd like to know that as well.

EDIT: I see that Big Mike did answer this several pages ago.

 

[dday]

You have to find what price works in your area. Don't top it out from the start either. That leaves no room for an increase if needed later down the road. And that ground between your "working price" and what the top out price would be is crucial to making things keep working later down the road. I would think that in most major markets you could easily offer whole house cleaning (with EVERYTHING included) for $249.00 with a top out price around $279-$289. Of course this varies from city to city and town to town.

I have given this approach a lot of thought since discovering this thread a few weeks ago. I would think it better to start high, seeking the "top-out" point, rather than starting low. It is always easier to lower an offer price if the response to the offer is lackluster, presuming that lackluster response is properly determined to be the result of a too high price (which is perhaps better viewed as a too low perceived value).

 

[Mikey P]

I too am fascinated my Big Mike's approach.


If I had to start over I think his would be the way to go.


Pa-lenTy of hard workers out there that would just assume clean a carpet than pick a head of lettuce or dig ditches for their hourly wage.



and just as many home owners that understand that with a low price, personality is not included in the deal.

 

[B&BGaryC]

I've been in a few too many giant houses to want to do a whole houae special... but then again the lady with the 8 thousand sq ft. House doesn't cqll the she house cleaning special guys...

 

[Ron Werner]

there's nothing saying you have to duplicate it "exactly", why not $300 house packages, could make 600 in a day easy, that's well over 100K a year without working too hard

 

[Mikey P]

I'll make Werner my crew chief.

 

[-JB-]

there's nothing saying you have to duplicate it "exactly", why not $300 house packages, could make 600 in a day easy, that's well over 100K a year without working too hard

funny you should say that today.